KUALA LUMPUR (Oct 29): Inter-Pacific Securities Sdn Bhd said while market players await for new leads from Budget 2022 to be announced later in the day, market conditions could stay guarded after Thursday’s steep falls.
In its daily bulletin on Friday (Oct 29), the research house said the selling picked up on Thursday to send the key index to its lowest level in two weeks and also below the 1,580 support amid the lack of new leads.
It said that as a result, profit taking was widespread among plantation and banking stocks as they continue to consolidate from their recent gains.
At the same time, it said the broader market and lower liners also saw sustained selling that resulted in market breadth staying decidedly negative.
“This means that there could be further downside bias as fresh buying has yet to materialise with most market players still on a wait-and-see stance.
“Nevertheless, the market could also be attempting to find some stability and the selling may abate somewhat that could allow the key index to find support around the 1,560 level.
“Below that, the other support is at 1,550 points. On the upside, meanwhile, the resistances are at 1,572 points and the 1,580 level,” it said.
Inter-Pacific said that aimilarly, the broader market and lower liners are unlikely to make much headway as participation in these stocks are still insipid.
“As such, their mostly mixed-to-lower conditions are likely to prevail for the time being as retail players are also awaiting for leads from the upcoming Budget,” it said.